Lorillard Corporation has the following information for April, May, and June 2018: April May June Units produced 12,500 12,500 12,500 Units sold 8,750 10,625 13,125 Production costs per unit (based on 12,500 units) are as follows: Direct materials $ 15 Direct labor 10 Variable factory overhead 7.50 Fixed factory overhead 5 Variable selling and admin. expenses 12.50 Fixed selling and admin. expenses 5 There were no beginning inventories for April 2018, and all units were sold for $50. Costs are stable over the three months. What is the April ending inventory for Lorillard Corporation using the variable costing method

April ending inventory cost= $121,875

Explanation:

As per the data given in the question,

Unit production cost       Absorption cost       Variable cost

Direct material                     $15                              $15

Direct labor                            10                                10  

Variable factory overhead    7.5                              7.5  

Fixed factory overhead          5

Total cost                               $37.5                       $32.5  

Finished goods inventory = 12,500 - 8,750 = 3,750

Finished goods inventory cost using absorption costing = 3,750 × $37.50

= $140,625

Finished goods inventory cost using variable costing  = 3,750 × $32.50

= $121,875

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.